Delta Corporation has three divisions, East, West and North. The following data pertain to operations in May. Sales Variable expenses Divisional margin East West North $ 45,000 $150,000 $72,000 $ 26,000 $(12,000) $ 90,000 $40,000 $25,000 $18,000 Total fixed expenses: $95,000. 1- Prepare a segmented income statement. Presentation should be in a good form. 2- Determine the net operating income (loss) if the corporation eliminates the "East division.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Delta Corporation has three divisions, East, West and North. The following data pertain to operations in May.
Sales
Variable expenses
Divisional margin
East
West
North
$ 45,000
$150,000
$72,000
$ 26,000
$ 90,000
$40,000
$(12,000)
$ 25,000
$18,000
Total fixed expenses: $95,000.
1- Prepare a segmented income statement. Presentation should be in a good form.
2- Determine the net operating income (loss) if the corporation eliminates the "East division.
Transcribed Image Text:Delta Corporation has three divisions, East, West and North. The following data pertain to operations in May. Sales Variable expenses Divisional margin East West North $ 45,000 $150,000 $72,000 $ 26,000 $ 90,000 $40,000 $(12,000) $ 25,000 $18,000 Total fixed expenses: $95,000. 1- Prepare a segmented income statement. Presentation should be in a good form. 2- Determine the net operating income (loss) if the corporation eliminates the "East division.
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